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Article
Publication date: 19 September 2022

Adams Adeiza, Queen Esther Oye and Philip O. Alege

This study examined the macroeconomic effects of COVID-19-induced economic policy uncertainty (EPU) in Nigeria. The study considered the effects of three related shocks: EPU…

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Abstract

Purpose

This study examined the macroeconomic effects of COVID-19-induced economic policy uncertainty (EPU) in Nigeria. The study considered the effects of three related shocks: EPU, COVID-19 and correlated economic policy uncertainty and COVID-19 shock.

Design/methodology/approach

First, the study presented VAR evidence that fiscal and monetary policy uncertainty depresses real output. Thereafter, a nonlinear DSGE model with second-moment fiscal and monetary policy shocks was solved using the third-order Taylor approximation method.

Findings

The authors found that EPU shock is negligible and expansionary. By contrast, COVID-19 shocks have strong contractionary effects on the economy. The combined shocks capturing the COVID-19-induced EPU shock were ultimately recessionary after an initial expansionary effect. The implication is that the COVID-19 pandemic-induced EPU adversely impacted macroeconomic outcomes in Nigeria in a non-trivial manner.

Practical implications

The result shows the importance of policies to cushion the effect of uncertain fiscal and monetary policy path in the aftermath of COVID-19.

Originality/value

The originality of the paper lies in examining the impact of COVID-19 induced EPU in the context of a developing economy using the DSGE methodology.

Details

African Journal of Economic and Management Studies, vol. 14 no. 1
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 13 May 2020

Abiola John Asaleye, Philip O. Alege, Adedoyin Isola Lawal, Olabisi Popoola and Adeyemi A. Ogundipe

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate…

338

Abstract

Purpose

One of the challenging factors in achieving sustainable growth is the inability of the Nigerian government to diversify the country's revenue base. This study aims to investigate the relationship between cash crop financing and agricultural performance in Nigeria.

Design/methodology

Four crops were considered, namely, cotton, cocoa, groundnut and palm oil. The impact of cash crop finance shock on agricultural performance was investigated using the vector error correction model (VECM), while the long-run relationship was examined through the identification of long-run restrictions on the VECM.

Findings

The variance decomposition showed that financing shock is more sensitive to cause variation in aggregate employment than aggregate agricultural output in palm oil, while for cocoa, cotton and groundnut showed otherwise. The long-run structural equations exert a positive relationship between cash crop financing and agricultural performance, except for oil palm and cocoa financing that has a negative connection with agrarian employment.

Research limitations/implications

The study is limited to the unavailability of data for agriculture sector capital utilisation, which was not used.

Practical implications

These results show that long-run benefit can be maximised by appropriate funding in cotton and groundnut production to promote sustainable growth.

Originality/value

The study examines the impact of cash crop financing on agricultural performance with the aim to promote sustainable growth in Nigeria using identified VECM.

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 26 August 2020

Evans S. Osabuohien

43

Abstract

Details

African Journal of Economic and Management Studies, vol. 11 no. 3
Type: Research Article
ISSN: 2040-0705

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Article
Publication date: 18 October 2019

Samuel Egbetokun, Evans Osabuohien, Temidayo Akinbobola, Olaronke Toyin Onanuga, Obindah Gershon and Victoria Okafor

Interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the…

1085

Abstract

Purpose

Interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the inverted U-shaped environmental Kuznets curve (EKC) when pollution is effectively dampened by social, political and economic factors as such economy grows. Thus, the purpose of this paper is to examine the EKC considering the impact of institutional quality on six variables of environmental pollution (carbon dioxide (CO2), nitrous oxide (N2O), suspended particulate matters (SPM), rainfall, temperature and total greenhouse emission (TGH)) using the case of Nigeria.

Design/methodology/approach

The EKC model includes population density, education expenditure, foreign direct investment and gross domestic investment as control variables, and it was analysed using the autoregressive distribution lag (ARDL) econometric technique, which has not been applied in the literature on Nigeria.

Findings

The results, inter alia, indicate that there is EKC for CO2 and SPM. This implies that the green growth objective can be pursued in Nigeria with concerted efforts. Other environmental pollution indicators did not exert significant influence on economic growth.

Practical implications

Therefore, it is recommended that Nigeria’s institutional quality be strengthened to limit environmental pollution in light of economic growth.

Originality/value

Previous studies are yet to apply a more developed econometric method, like the ARDL, to estimate the EKC model for Nigeria. This study fills this observed knowledge gap.

Details

Management of Environmental Quality: An International Journal, vol. 31 no. 1
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 10 July 2024

Udemezue Ndubuisi Nnakee, Chi Aloysius Ngong, Chinyere C. Onyejiaku, Shadrack Moguluwa and Josaphat Uchechukwu Joe Onwumere

This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.

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Abstract

Purpose

This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.

Design/methodology/approach

Market capitalization, number of listed companies, total value traded ratio and turnover ratio are used. An autoregressive distributed lag model is used for the analysis.

Findings

The market capitalization ratio and turnover ratio have positively significant links with economic growth. The number of listed companies has a negative and non-significant impact on economic growth. Total value traded ratio has a negatively significant link with economic growth in the short run. The positive but insignificant relationship between traded value ratio and turnover ratio in the long run growth means that the Nigerian stock market is growth inducing and on the right track as stock market liquidity drives growth.

Research limitations/implications

The government and Security Exchange Commission should increase the market liquidity level by improving the trading infrastructure. The government and regulatory authorities should improve and effectively implement the existing policies that would ensure stock market growth. This facilitates the investors’ speed to purchase and sell shares. The Securities and Exchange Commission should reduce transaction costs to encourage active trading activities. The market should be diversified with investment instruments such as derivatives, futures and swap options which would limit the adverse effect of listed companies in the market. To increase the stock market liquidity, the Security and Exchange Commission should apply moral suasion to bring private companies that have met certain financial thresholds to convert to public companies. Government should improve on the legislation to encourage more private companies to list on the stock exchange.

Originality/value

The study findings add value in that stock market development has a positive impact on economic growth in Nigeria.

Details

Journal of Financial Economic Policy, vol. 17 no. 1
Type: Research Article
ISSN: 1757-6385

Keywords

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